Break-Even Calculator

Find the units and revenue needed to break even.

Break-even units

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Break-even revenue

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Contribution / unit

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Contribution margin

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Fixed costs

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Units round up to the next whole sale. To target a profit, add it to fixed costs first. General information, not financial advice.

The point where you stop losing

Break-even is the sales level where total revenue exactly covers total costs — no profit, no loss. Below it you lose money; above it each extra sale is profit.

break-even units = fixed costs ÷ (price − variable cost)

The denominator is the contribution margin: what each unit chips in toward the fixed costs. The bigger that margin, the fewer units you need to sell to get into the black.

Worked example

With $10,000 of fixed costs, a $50 price and $30 variable cost, each sale contributes $20. You break even at 500 units — $25,000 of revenue.

Using break-even in planning

Break-even analysis is a quick reality check for any product or venture. It shows how price changes, cost cuts or higher fixed overheads move the target, and how much headroom you have before a price war eats your margin.

Worth remembering

Margin drives it. Raising price or cutting variable cost lowers the break-even point.
Fixed costs raise the bar. More overhead means more units to cover it.
Add profit to fixed. Target a profit by treating it as an extra fixed cost.

This is general information, not financial advice.

Frequently asked questions

What is the contribution margin?

The price minus the variable cost per unit — the amount each sale contributes toward covering fixed costs. Once fixed costs are covered, that margin becomes profit.

What counts as a fixed cost?

Costs that do not change with output — rent, salaries, insurance, equipment. Variable costs, like materials and per-unit labour, rise with each unit you make or sell.

What if price is below variable cost?

Then every sale loses money and there is no break-even point — you would need to raise the price or cut variable costs first. The calculator flags this.

Does this include tax or profit targets?

No, it is the pure break-even point. To hit a profit target, add the desired profit to fixed costs before dividing by the contribution margin.